Now it has been reported that the insurance regulatory and development authority (IRDA) of India is likely to finalise its report by next week on the allegations of money laundering by three companies – HDFC Life, ICICI Prudential Life and Max Life. A similar report is also expected from RBI very soon. This would surely increase the trouble for these banks.

Last month, IRDA had sought explanations from CEOs of three life insurance companies after taking note of the sting operation that alleged money laundering in ICICI, HDFC and Axis banks.

Further, the banking regulatory authorities of India must also penalise the guilty banks that have failed to ensure cyber security and anti cyber crime measures at their banks. Banks are taking the cyber security and cyber law due diligence requirements very casually.

This is resulting in many financial frauds that these banks try to pass to the ultimate bank account holder. ATM frauds, Internet banking frauds, online banking frauds, RTGS frauds, money laundering offences, etc are on rise in India. RBI must urgently step in to regulate the affairs of those banks that are flouting the cyber law and cyber security requirements prescribed by RBI from time to time.